The most popular luxury investments

Luxury goods auctions have smashed records in 2014, but overall investment into the sector is slowing, according to a new report.

The Knight Frank Luxury Investment Index (KFLII) for 2014 grew by 6% in the 12 months to June 2014, with investment into classic luxury cars driving it forward.

The KFLII highlights the value of selected luxury investments as a long-term portfolio diversifier, cross referencing with other, more specific indices.

The value of the world’s most collectable vehicles have risen by 25% year-on-year, according to the Historic Automotive Group International’s (HAGI) TOP index.

According to Knight Frank, in August, a 1962 Ferrari 250 GTO Berlinetta set a new auction record when it went under the hammer for $38 million at Bonhams’ Quail Lodge sale in California.

Luxury cars have shown the highest investment growth when measured over 5 and 10 years, having recorded 111% and 469% growth over those periods, respectively.

However, the rate of growth of the luxury car index is slowing, from 47% in 2013, to an expected drop of 12% in 2014.

Coins also put in a strong performance with the Stanley Gibbons 200 Index rising 10% on the year, Knight Frank noted.

Other luxury goods which have shown investment growth over the course of the year include Art (5%), Stamps (3%), Wines (3%) and Jewellery (3%).

Conversely, in the past 12 months, 5 years and 10 years, antique furniture has shown a consistent decline in investment, dropping 8% in the past year, and 22% and 24% over the 5 and 10 year periods.

1962 Ferrari 250 GTO Berlinetta
1962 Ferrari 250 GTO Berlinetta

Top luxury goods investments 2014

# Luxury Goods
Change
1 Cars 25%
2 Coins 10%
3 KFLII 6%
4 Art 5%
5 Stamps 3%
6 Watches 3%
7 Wine 3%
8 Jewellery 0%
9 Chinese Ceramics -2%
10 Antique Furniture -8%
Luxury goods 5 year and 10 year change
Luxury goods 5 year and 10 year change

Record-setting luxury auctions:

  • 1962 Ferrari 250 GTO Berlinetta – $38 million
  • Edward VIII Sovereign coin – $809,000
  • British Guiana 1856 1c stamp – $9.48 million

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